Who can use the Faster Payments Service?

Users of the Faster Payments Service can be divided into participants from the financial service community that use the central infrastructure directly and those indirect users that use the service through another financial institution.

Institutions can become participants in the Faster Payments Service, either as direct agencies, third-party beneficiaries or as corporates. Financial institutions can also become full members. All these participants are able to submit payments into the Faster Payments Service, either singly and/or in bulk files, depending on what type of participant they are, using their own direct connection to the service. 

Members

Faster Payments Service membership is open to credit institutions with a settlement account at the Bank of England, and who can connect their payment system to the central infrastructure 24 hours a day, 7 days a week.

Members are responsible for settlement of funds through the Bank of England and can sponsor other participants into the service that do not wish to have settlement commitments for the Faster Payments Service. Members are responsible for the settlement of all payments submitted by participants that they sponsor.

Direct Agencies

As with other UK payment systems, financial institutions who do not want or need to be full members of the Faster Payments Service can choose to become agency participants. Direct agencies are able to send and receive all types of payments processed through the service in the same way as a member, but they must be sponsored by one or more members who will provide interbank settlement facilities for those payments made and accepted by the agency.

Third-party Beneficiaries

Companies such as credit card companies can connect to the Faster Payments Service, in order to be able to receive information regarding payments directly, rather than having them sent through their bank. Third-party Beneficiaries must be sponsored by one or more members who will provide inter-bank settlement facilities for those payments accepted by the Third-party Beneficiary.

Corporates

Corporates, such as those paying a large number of employee expenses, are able to submit files of payments directly into the system in much the same way as they do through Bacs. These corporates will need to be sponsored by a bank that is already either a member or an agency within the Faster Payments Service and offering corporate services to their customers.

Indirect Agencies

This includes financial institutions that do connect directly with the Faster Payments infrastructure, but who send and receive Faster Payments through a sponsoring member. Some agencies may be sponsored by their member to submit bulk files directly into the system in a similar fashion as they do through Bacs.

Customers

Personal customers and small businesses are able to access the service using their online banking service to make individual payments or standing orders or a telephone banking service.